Andean Precious Metals Corp.

Andean Precious Metals Corp. is a junior gold and silver producer headquartered in Toronto, Canada, operating primarily in South America. The company's portfolio consists of 1 operating mine. Key assets include Soledad Mountain. The company operates as a precious metals producer with a dual-pronged business model that combines mineral extraction from its own operations with the processing of third-party materials sourced from local suppliers and through contractual agreements. This approach leverages a centralized processing infrastructure capable of handling diverse material types. The enterprise utilizes conventional open-pit mining methods, cyanide heap leaching, and a Merrill-Crowe recovery facility, alongside a separate cyanidation circuit for different feedstocks. Success in this competitive sector relies on specialized knowledge across geology, exploration, mine development, and advanced processing technologies. The business is subject to the cyclical nature of the industry, with profitability influenced by global economic trends and market price fluctuations for metals. The company manages supply chain risks for critical reagents like cyanide and zinc by maintaining a 3-month reserve at its storage facilities.

The organization's growth strategy is centered on expanding its presence and becoming a mid-tier producer through a combination of acquisitions and organic development. A key operational focus involves transitioning to a material processing model that prioritizes high-grade, high-margin feed to maximize plant efficiency and profitability. The company actively evaluates new purchasing and acquisition opportunities to supplement its production pipeline. Capital allocation is managed through disciplined initiatives, including a Normal Course Issuer Bid to repurchase shares, demonstrating a commitment to returning value to shareholders. Financial flexibility is enhanced by arrangements such as a $25 million revolving line of credit secured for general corporate purposes. The acquisition strategy involves careful candidate selection and due diligence to mitigate risks associated with integrating new operations, personnel, and potential liabilities, while aiming to realize synergies and strengthen the company's market position.

Executive leadership is headed by the company's founder, who serves as both Executive Chairman and CEO. The board of directors is composed of 7 members, with a designated Lead Independent Director to ensure robust oversight. Governance is structured through 4 key committees: Audit; Nomination and Corporate Governance; Compensation; and Health, Safety, Environment, Social, and Sustainability. The Audit Committee, comprising 3 independent and financially literate members, meets at least quarterly and maintains direct reporting lines with the external auditor to ensure financial integrity and resolve any disagreements with management. This committee also holds in-camera sessions without management present at each meeting. The governance framework is further defined by a detailed Audit Committee Charter, which outlines responsibilities for financial reporting oversight, internal controls, and risk management. A significant portion of the company's equity, approximately 54.58%, is beneficially owned or controlled by the directors and executive officers as a group.

The organization's commitment to sustainability is demonstrated through the achievement of several international certifications, including the Responsible Minerals Initiative, ISO 14001:2015 for Environmental Management, and ISO 45001:2018 for Occupational Health and Safety. Board-level oversight is provided by a dedicated Health, Safety, Environment, Social, and Sustainability Committee. The company maintains a strong focus on workplace safety, having achieved significant milestones with extended periods free of lost-time injuries. In 2024, the entity filed its inaugural Forced and Child Labour Report, detailing its processes for assessing and mitigating human rights risks within its supply chains. Environmental stewardship is a priority, with a record of zero reportable environmental incidents in 2023 and 2024 and a continued focus on effective water management. The company has also established procedures for the confidential submission of employee concerns regarding accounting or auditing matters through a formal whistleblower policy.

The corporate structure was significantly expanded in November 2023 through the acquisition of Golden Queen Mining Company LLC, which added a major operating asset. The company conducts its business through several wholly-owned subsidiaries, including Empresa Minera Manquiri S.A. and the recently acquired Golden Queen. Administrative and management oversight for all operations is increasingly centralized through its subsidiary, Andean PM AB. A notable aspect of the ownership structure is the high concentration of insider holdings, with directors and executive officers collectively controlling approximately 54.58% of the issued and outstanding common shares as of December 31, 2024. The company also enters into long-term supply agreements to secure material for its processing facilities, such as a 5-year contract with Silver Elephant Mining Corp. and a 24-month contract related to the Alta Vista project, which are commercial arrangements rather than equity-based joint ventures.